Paddy Power delays New Jersey entry
Irish operator will not take part in New Jersey launch citing concerns over the highly competitive market and fragmented poker pools
Paddy Power has announced it will not take part in the launch of egaming in New Jersey, despite its successful application for a transactional waiver from the state’s Division of Gaming Enforcement.
In an analysts call to investors, Paddy Power CEO Patrick Kennedy (pictured) cited concerns over big-name competition and poker liquidity.
“We see fragmented poker liquidity with at least five separate pools,” said Kennedy. “We see a highly competitive B2C landscape, and a lot of strong US brands launching.”
He also mentioned concerns over the continued presence of gray market operators which will hamper the regulated launch, citing “less restrictions on gray market play than we would have liked ideally”.
Paddy Power plans to continue to explore possibilities in the US, and added the US has the “potential to be a valuable market” for the company.
Despite Paddy Power’s transactional waiver it must first sign a partnership with one of the state’s bricks-and-mortar casinos to be able to offer its services in New Jersey.
However, the regulator has said the Irish operator is eligible to enter the market as soon as a deal is signed.